Should I sell my buy to let property ??

Wh05apk

I think you need to sit down with a good broker, and look at the whole situation, why do you have an expensive secured loan, and not a mortgage?


It may be you could remortgage the loan to a cheaper residential mortgage, possibly raise additional funds to reduce the LTV down on the rental property, meaning you could remortgage that to a better fixed rate?

Floyd1973

Wh05apk wrote: »

I think you need to sit down with a good broker, and look at the whole situation, why do you have an expensive secured loan, and not a mortgage?


It may be you could remortgage the loan to a cheaper residential mortgage, possibly raise additional funds to reduce the LTV down on the rental property, meaning you could remortgage that to a better fixed rate?

Long story short......we took out the secured loan over 15 years intending to make money on a friends property venture that went tits up....we should have paid it back within 2 yrs and made a profit...maybe if we are lucky we might get the money back one day. Thats life. Meanwhile still paying the loan! We are also on a debt management plan so credit rating is non existant. They do know about 2nd property and rent etc.

Thrugelmir

Floyd1973 wrote: »

Wish I had a chrystal ball...lol

Try a calculator instead.

At 7% interest rates this would be a monthly charge of £817. Soon make your investment less attractive I suggest.

Your unsecured loan is going to cost you £31k to repay over the next 10 years. Is the interest rate variable on this loan?

You need to weigh up the potential gain against the risk you are exposed to.

[Deleted User]

Floyd1973 wrote: »

I am not in a good position to fund any work at the buy to let property or cover mortgage if its empty..

I think this answers your question. If you can't afford to operate as a landlord (and voids are part of that) you... can't be a landlord. You need to either sell the property or correct this by saving money as a matter of urgency.

Owain_Moneysaver

Floyd1973 wrote: »

If we put it into joint names we will have to make mortgage company know we are letting it out so wanted to avoid that.

If you don't tell the mortgage company you are running an investment property on a residential mortgage then you may be committing fraud.

Your insurance will also be invalid.

Floyd1973

Thrugelmir wrote: »

Try a calculator instead.

At 7% interest rates this would be a monthly charge of £817. Soon make your investment less attractive I suggest.

Your unsecured loan is going to cost you £31k to repay over the next 10 years. Is the interest rate variable on this loan?

You need to weigh up the potential gain against the risk you are exposed to.

Thats my thoughts exactly. The interest rate is fixed on the loan. I'd rather try and sell it now than wait until we get in a desperate situation.
Thanks

Floyd1973

Well, tenants have said they are staying put for a couple of years.......will wait and see what interest rates do and hope house prices go up more. Thanks for your help everyone. Will also see if we can get secured loan put onto our own mortgage so it will be cheaper.